0% credit cards for use on paypal

MADMONSTA

Hello I was just wondering if i apply for a new cc with 0% on new purchases and transfers for 12 mths and then add it to my paypal account will i still get the 0% if i send somone money via paypal or is it treated as cash withdrawl.

I want to by a Bike off of a private seller for £3000 witch i will be able to payoff within the 12mths

or is there a better way of doing this.

dylanuk

Hi,

It's a difficult one to answer and it could possibly vary between different card issuers.

They're quite hot on making money when they can - and it could be argued that PayPal is a 'money transfer' service.

However, PayPal is often used by a lot of smaller businesses as well as individuals for accepting payments for goods or services - which are purchases.

I think a 0% purchase credit card definitely sounds like the best way to go with spreading your repayments over the next year: HSBC offers the longest deal - 0% on purchases for 12 months.

However, I would seriously recommend contacting HSBC FIRST and asking them how they would class a PayPal transaction to an individual - and if it would be included in the 0% deal - (get an e-mail or a phone call reference number if you can - just to be on the safe side).

Alternatively, the other option would be to get a 0% balance transfer credit card that allows you to move the 'credit limit' into your current account - MBNA are the only people to openly advertise the ability to do this on their Platinum Plus credit card, it's called "0% transfers into a current account".

So you'd just transfer your credit limit from the MBNA Platinum Plus into your current account and spend the money from there. The 'debt' on the MBNA card would then be at 0% for 12 months or so.

Then the other way - which does involve more plastic - is getting any old 0% balance transfer credit card and the Egg Money card which allows you to have a positive balance on it, and transfer the 0% credit limit to Egg Money - where you can withdraw it or transfer it on to your current account to spend as needed.

You would have to pay a 3% transfer fee doing it the 'balance transfer' way though - but it would be a way to get 0% if HSBC won't include a PayPal transaction as a 0% purchase.

Hope this helps,

dazza.mk

Normally Paypal is treated as a purchase rather than a cash withdrawal, however the receiver pays a 3.4% + 20p to receive a credit card payments via Paypal which on £3000 would be £122!